Suppliers keep hurting: Outotec axes 500 jobs, Metso warns of big fall in full-year sales
Finnish mining technology supplier Outotec said Thursday it is axing up to 500 jobs cut up to 500 jobs as a slow-moving global economy continues to make miners be frugal with spending.
The company fell as much as 14% in Helsinki, the lowest it has traded in more than three years, on the news that included lowered 2013 sales and profit forecasts.
The Espoo-based firm said is trying to achieve $68 million annual cost savings by the end of next year.
Outotec also said its third-quarter sales fell to 440 million euros from 503 million a year earlier, with new orders slumping to 229 million from 452 million.
The announcement came right after global mining supplier Metso said it was lowering its financial guidance for the year.
The firm said its full-year sales and earnings before interest, taxes and amortisation (EBITA), excluding one-off items, would be considerably lower than in 2012. Metso had previously forecast underlying EBITA would be somewhat lower.
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